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Bitcoin (BTC) Might Trade Sideways For Months But Correction Is Almost Over
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Bitcoin (BTC) Might Trade Sideways For Months But Correction Is Almost Over

Bitcoin Chart With Values Bitcoin (BTC) is trading sideways for the time being, with a dwindling daily volume and a lack of interest on behalf of both the buyers and the sellers. An important principle of technical analysis is that volume precedes price. That means that if you are trying to look for clues as to what is going to happen next to the price, volume is the first place you need to start. The same applies to Bitcoin (BTC) and is one of the reasons we believe the correction is almost over. When the price of an asset like Bitcoin (BTC) falls and the daily volume continues to drop with it, that indicates a trend change is coming. Moreover, a falling volume for an asset like Bitcoin (BTC) means that the number of hodlers is growing against the number of traders. This further implies that the current price action will be short lived and is a false indicator of the true value of the asset. If a price is trading higher with decreasing volume that means the price is likely to come down as the volume is no longer an accurate depiction of the interest in the asset. Similarly if the price is going down and the volume is going down with it that means a small number of players can manipulate the price of that asset and that a trend change is close by. A scenario like this does not suit the bears as the risk of a trend reversal and a short squeeze at this point does not make it worth the risk/reward to execute a trade. As for the bulls, a scenario like this requires patience to spot early signs of a reversal. The RSI level on the daily chart is currently near oversold levels. However, the ADX has just climbed above 40 which shows an increasing strength in downward action and could likely drag the price down to retest $6,000 again. Regardless of that, a strategy to dollar cost average buys at this point would be the best course of action as the future looks brighter than ever for Bitcoin (BTC). Bitcoin Chart With Values On the weekly chart, Bitcoin (BTC) has an ADX of below 20 which means that neither the bulls nor the bears are interested to trade at this point. So, the next move will be a big one and it will be up to the market makers to put it in motion. The RSI level on the weekly chart is also nearing oversold levels. Bitcoin (BTC) broke out of the triangle to the downside and will likely test $5,800 to $6,000 levels in the near future. An ADX rise above 20 would see some bears covering their shorts, hence thrusting the price upwards. The price may still continue to trade sideways for the next few months but this correction seems to be over as the price will continue to trade in a narrow range until decisive movement later this year.

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